UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5822
MFS CHARTER INCOME TRUST
(Exact name of registrant as specified in charter)
500 Boylston Street, Boston, Massachusetts 02116
(Address of principal executive offices) (Zip code)
Susan S. Newton
Massachusetts Financial Services Company
500 Boylston Street
Boston, Massachusetts 02116
(Name and address of agents for service)
Registrant’s telephone number, including area code: (617) 954-5000
Date of fiscal year end: November 30
Date of reporting period: February 28, 2009
| ITEM 1. | SCHEDULE OF INVESTMENTS. |
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/09
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – 91.9% |
||||||
| Aerospace – 0.2% |
||||||
| Bombardier, Inc., 6.3%, 2014 (n) |
$ | 1,000,000 | $ | 670,000 | ||
| Hawker Beechcraft Acquisition Co. LLC, 8.5%, 2015 |
795,000 | 151,050 | ||||
| TransDigm Group, Inc., 7.75%, 2014 |
260,000 | 239,200 | ||||
| $ | 1,060,250 | |||||
| Airlines – 0.2% |
||||||
| AMR Corp., 7.858%, 2011 |
$ | 565,000 | $ | 488,725 | ||
| Continental Airlines, Inc., 7.339%, 2014 |
431,000 | 275,840 | ||||
| $ | 764,565 | |||||
| Asset Backed & Securitized – 3.5% |
||||||
| Asset Securitization Corp., FRN, 8.63%, 2029 |
$ | 1,317,681 | $ | 1,440,860 | ||
| Bayview Financial Acquisition Trust, FRN, 5.483%, 2041 |
404,000 | 318,185 | ||||
| Bayview Financial Revolving Mortgage Loan Trust, FRN, 1.296%, 2040 (z) |
1,160,000 | 510,400 | ||||
| Citigroup/Deutsche Bank Commercial Mortgage Trust, FRN, 5.366%, 2049 |
1,605,000 | 563,861 | ||||
| Commercial Mortgage Pass-Through Certificates, FRN, 5.793%, 2046 |
230,000 | 94,320 | ||||
| Countrywide Asset-Backed Certificates, FRN, 5.147%, 2035 |
2,000,000 | 1,391,060 | ||||
| Credit Suisse Mortgage Capital Certificate, 5.343%, 2039 |
1,080,744 | 402,074 | ||||
| Crest Ltd., CDO, 7%, 2040 |
2,000,000 | 270,000 | ||||
| DLJ Commercial Mortgage Corp., 6.04%, 2031 (z) |
2,000,000 | 1,717,865 | ||||
| First Union-Lehman Brothers Bank of America, FRN, 0.444%, 2035 (i) |
21,820,128 | 351,057 | ||||
| First Union-Lehman Brothers Commercial Mortgage Trust, 7%, 2029 (n) |
583,283 | 571,530 | ||||
| JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 6.062%, 2051 |
185,000 | 28,846 | ||||
| Merrill Lynch Mortgage Trust, FRN, 5.828%, 2050 |
185,000 | 28,249 | ||||
| Morgan Stanley Capital I, Inc., 5.168%, 2042 |
919,020 | 687,162 | ||||
| Mortgage Capital Funding, Inc., FRN, 2.399%, 2031 (i) |
450,119 | 23 | ||||
| Nationslink Funding Corp., 5%, 2031 (z) |
714,660 | 703,763 | ||||
| New Century Home Equity Loan Trust, FRN, 4.532%, 2035 |
1,966,624 | 1,876,899 | ||||
| PNC Mortgage Acceptance Corp., FRN, 7.1%, 2032 (z) |
2,510,000 | 2,165,858 | ||||
| Spirit Master Funding LLC, 5.05%, 2023 (z) |
1,666,995 | 1,333,906 | ||||
| Structured Asset Securities Corp., FRN, 4.67%, 2035 |
1,102,557 | 855,386 | ||||
| Wachovia Bank Commercial Mortgage Trust, FRN, 5.692%, 2047 |
1,503,155 | 184,669 | ||||
| $ | 15,495,973 | |||||
| Automotive – 1.2% |
||||||
| Accuride Corp., 8.5%, 2015 |
$ | 780,000 | $ | 234,000 | ||
| Allison Transmission, Inc., 11%, 2015 (n) |
1,855,000 | 899,675 | ||||
| FCE Bank PLC, 7.125%, 2012 |
EUR | 2,800,000 | 2,165,317 | |||
| Ford Motor Credit Co. LLC, 9.75%, 2010 |
$ | 1,240,000 | 800,668 | |||
| Ford Motor Credit Co. LLC, 12%, 2015 |
362,000 | 210,760 | ||||
| Ford Motor Credit Co. LLC, 8%, 2016 |
250,000 | 117,765 | ||||
| General Motors Corp., 8.375%, 2033 |
629,000 | 83,342 | ||||
| Goodyear Tire & Rubber Co., 9%, 2015 |
880,000 | 664,400 | ||||
| $ | 5,175,927 | |||||
| Broadcasting – 1.7% |
||||||
| Allbritton Communications Co., 7.75%, 2012 |
$ | 2,085,000 | $ | 938,250 | ||
| CBS Corp., 6.625%, 2011 |
369,000 | 345,077 | ||||
| Clear Channel Communications, 10.75%, 2016 (n) |
280,000 | 40,600 | ||||
| Clear Channel Communications, Inc., 6.25%, 2011 |
1,240,000 | 136,400 | ||||
| DirectTV Holdings LLC, 7.625%, 2016 |
2,350,000 | 2,256,000 | ||||
| Intelsat Jackson Holdings Ltd., 9.5%, 2016 (z) |
685,000 | 633,625 | ||||
| Lamar Media Corp., 7.25%, 2013 |
675,000 | 523,125 | ||||
| Lamar Media Corp., 6.625%, 2015 |
1,205,000 | 777,225 | ||||
| Lamar Media Corp., “C”, 6.625%, 2015 |
245,000 | 153,125 | ||||
| LIN TV Corp., 6.5%, 2013 |
1,415,000 | 735,800 | ||||
| Local TV Finance LLC, 9.25%, 2015 (p)(z) |
900,000 | 91,125 | ||||
| Newport Television LLC, 13%, 2017 (n)(p) |
105,000 | 4,200 | ||||
1
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Broadcasting – continued |
||||||
| News America, Inc., 6.2%, 2034 |
$ | 325,000 | $ | 246,965 | ||
| Nexstar Broadcasting Group, Inc., 7%, 2014 |
680,000 | 238,850 | ||||
| Univision Communications, Inc., 9.75%, 2015 (n)(p) |
1,280,000 | 96,000 | ||||
| $ | 7,216,367 | |||||
| Brokerage & Asset Managers – 0.4% |
||||||
| INVESCO PLC, 5.625%, 2012 |
$ | 1,440,000 | $ | 1,134,864 | ||
| Lehman Brothers Holdings, Inc., 6.5%, 2017 (d) |
1,260,000 | 126 | ||||
| Nuveen Investments, Inc., 10.5%, 2015 (n) |
1,755,000 | 403,650 | ||||
| $ | 1,538,640 | |||||
| Building – 0.7% |
||||||
| Associated Materials, Inc., 9.75%, 2012 |
$ | 1,075,000 | $ | 886,875 | ||
| Building Materials Corp. of America, 7.75%, 2014 |
300,000 | 205,500 | ||||
| CRH PLC, 8.125%, 2018 |
898,000 | 699,300 | ||||
| Nortek, Inc., 10%, 2013 |
1,010,000 | 404,000 | ||||
| Ply Gem Industries, Inc., 11.75%, 2013 |
1,435,000 | 660,100 | ||||
| $ | 2,855,775 | |||||
| Business Services – 0.5% |
||||||
| First Data Corp., 9.875%, 2015 |
$ | 1,990,000 | $ | 1,094,500 | ||
| SunGard Data Systems, Inc., 10.25%, 2015 |
1,760,000 | 1,205,600 | ||||
| $ | 2,300,100 | |||||
| Cable TV – 1.7% |
||||||
| CCO Holdings LLC, 8.75%, 2013 |
$ | 1,500,000 | $ | 1,170,000 | ||
| Charter Communications, Inc., 8.375%, 2014 (n) |
590,000 | 507,400 | ||||
| Charter Communications, Inc., 10.875%, 2014 (n) |
70,000 | 64,750 | ||||
| CSC Holdings, Inc., 8.5%, 2014 (z) |
270,000 | 259,200 | ||||
| CSC Holdings, Inc., 8.5%, 2015 (n) |
1,980,000 | 1,890,900 | ||||
| Mediacom LLC, 9.5%, 2013 |
850,000 | 739,500 | ||||
| TCI Communications, Inc., 9.8%, 2012 |
701,000 | 757,100 | ||||
| Virgin Media, Inc., 9.125%, 2016 |
2,185,000 | 1,920,069 | ||||
| $ | 7,308,919 | |||||
| Chemicals – 1.1% |
||||||
| Innophos Holdings, Inc., 8.875%, 2014 |
$ | 970,000 | $ | 771,150 | ||
| Momentive Performance Materials, Inc., 11.5%, 2016 |
2,062,000 | 433,020 | ||||
| Mosaic Co., 7.625%, 2016 (n) |
1,525,000 | 1,464,000 | ||||
| Nalco Co., 7.75%, 2011 |
340,000 | 336,600 | ||||
| Yara International A.S.A., 5.25%, 2014 (n) |
2,000,000 | 1,675,880 | ||||
| $ | 4,680,650 | |||||
| Computer Software – 0.3% |
||||||
| Seagate Technology HDD Holdings, 6.375%, 2011 |
$ | 1,950,000 | $ | 1,316,250 | ||
| Computer Software - Systems – 0.3% |
||||||
| International Business Machines Corp., 8%, 2038 |
$ | 1,000,000 | $ | 1,188,434 | ||
| Conglomerates – 0.7% |
||||||
| Actuant Corp., 6.875%, 2017 |
$ | 1,005,000 | $ | 889,425 | ||
| Fisher Scientific International, Inc., 6.125%, 2015 |
1,254,000 | 1,235,324 | ||||
| Kennametal, Inc., 7.2%, 2012 |
1,140,000 | 1,136,581 | ||||
| $ | 3,261,330 | |||||
| Consumer Goods & Services – 1.5% |
||||||
| Corrections Corp. of America, 6.25%, 2013 |
$ | 215,000 | $ | 205,862 | ||
| Fortune Brands, Inc., 5.125%, 2011 |
671,000 | 661,324 | ||||
| Jarden Corp., 7.5%, 2017 |
1,810,000 | 1,411,800 | ||||
| KAR Holdings, Inc., 5.17%, 2014 |
380,000 | 136,800 | ||||
| KAR Holdings, Inc., 10%, 2015 |
930,000 | 316,200 | ||||
2
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Consumer Goods & Services – continued |
||||||
| Service Corp. International, 7%, 2017 |
$ | 3,030,000 | $ | 2,757,300 | ||
| Ticketmaster, 10.75%, 2016 (n) |
1,510,000 | 1,087,200 | ||||
| $ | 6,576,486 | |||||
| Containers – 0.7% |
||||||
| Crown Americas LLC, 7.625%, 2013 |
$ | 500,000 | $ | 502,500 | ||
| Crown Americas LLC, 7.75%, 2015 |
565,000 | 569,237 | ||||
| Graham Packaging Holdings Co., 9.875%, 2014 |
800,000 | 504,000 | ||||
| Greif, Inc., 6.75%, 2017 |
855,000 | 748,125 | ||||
| Owens-Brockway Glass Container, Inc., 8.25%, 2013 |
940,000 | 949,400 | ||||
| $ | 3,273,262 | |||||
| Defense Electronics – 0.9% |
||||||
| BAE Systems Holdings, Inc., 4.75%, 2010 (n) |
$ | 790,000 | $ | 788,138 | ||
| BAE Systems Holdings, Inc., 5.2%, 2015 (n) |
750,000 | 727,140 | ||||
| L-3 Communications Corp., 5.875%, 2015 |
1,145,000 | 1,056,263 | ||||
| L-3 Communications Corp., 6.375%, 2015 |
1,500,000 | 1,417,500 | ||||
| $ | 3,989,041 | |||||
| Electronics – 0.3% |
||||||
| Avago Technologies Ltd., 11.875%, 2015 |
$ | 500,000 | $ | 370,000 | ||
| Flextronics International Ltd., 6.25%, 2014 |
1,170,000 | 982,800 | ||||
| Freescale Semiconductor, Inc., 8.875%, 2014 |
425,000 | 76,500 | ||||
| Spansion, Inc., 11.25%, 2016 (d)(n) |
750,000 | 17,812 | ||||
| $ | 1,447,112 | |||||
| Emerging Market Quasi-Sovereign – 2.8% |
||||||
| Banco Nacional de Desenvolvimento Economico e Social, 6.369%, 2018 (n) |
$ | 1,050,000 | $ | 972,563 | ||
| Corporacion Nacional del Cobre de Chile, 4.75%, 2014 |
1,066,000 | 1,018,552 | ||||
| Corporacion Nacional del Cobre de Chile, 5.625%, 2035 |
1,900,000 | 1,340,585 | ||||
| Corporación Nacional del Cobre de Chile, 7.5%, 2019 (z) |
253,000 | 266,606 | ||||
| Gazprom International S.A., 7.201%, 2020 |
830,668 | 670,224 | ||||
| Korea Development Bank, 8%, 2014 |
1,154,000 | 1,166,049 | ||||
| Majapahit Holding B.V., 7.25%, 2017 (n) |
1,478,000 | 953,310 | ||||
| National Power Corp., FRN, 5.5%, 2011 |
780,000 | 740,814 | ||||
| Pemex Project Funding Master Trust, 5.75%, 2018 |
2,006,000 | 1,623,598 | ||||
| Petroleos Mexicanos, 8%, 2019 (n) |
1,101,000 | 1,081,733 | ||||
| Ras Laffan Liquefied Natural Gas Co. Ltd., 8.294%, 2014 (n) |
2,490,000 | 2,564,989 | ||||
| $ | 12,399,023 | |||||
| Emerging Market Sovereign – 2.7% |
||||||
| Federative Republic of Brazil, 6%, 2017 |
$ | 4,176,000 | $ | 4,040,280 | ||
| Federative Republic of Brazil, 5.875%, 2019 |
245,000 | 232,750 | ||||
| Republic of Argentina, FRN, 1.683%, 2012 |
1,947,150 | 1,046,910 | ||||
| Republic of Colombia, 7.375%, 2017 |
1,393,000 | 1,400,662 | ||||
| Republic of Columbia, 7.375%, 2019 |
205,000 | 202,950 | ||||
| Republic of Indonesia, 10.375%, 2014 (z) |
252,000 | 251,668 | ||||
| Republic of Indonesia, 6.875%, 2017 (n) |
171,000 | 131,670 | ||||
| Republic of Indonesia, 6.875%, 2018 (n) |
531,000 | 403,560 | ||||
| Republic of Indonesia, 6.875%, 2018 |
204,000 | 155,040 | ||||
| Republic of Indonesia, 11.625%, 2019 (z) |
1,703,000 | 1,689,633 | ||||
| Republic of Indonesia, 7.75%, 2038 (n) |
593,000 | 403,240 | ||||
| Republic of Panama, 9.375%, 2029 |
553,000 | 608,300 | ||||
| Republic of Philippines, 9.375%, 2017 |
449,000 | 512,982 | ||||
| Republic of Philippines, 8.375%, 2019 |
100,000 | 105,875 | ||||
| Republic of Turkey, 7%, 2019 |
722,000 | 638,970 | ||||
| $ | 11,824,490 | |||||
| Energy - Independent – 2.9% |
||||||
| Chaparral Energy, Inc., 8.875%, 2017 |
$ | 1,495,000 | $ | 358,800 | ||
3
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Energy - Independent – continued |
||||||
| Chesapeake Energy Corp., 9.5%, 2015 |
$ | 335,000 | $ | 311,550 | ||
| Chesapeake Energy Corp., 6.375%, 2015 |
2,200,000 | 1,798,500 | ||||
| Chesapeake Energy Corp., 6.875%, 2016 |
1,070,000 | 880,075 | ||||
| Delta Petroleum Corp., 7%, 2015 |
70,000 | 27,300 | ||||
| Forest Oil Corp., 8.5%, 2014 (z) |
120,000 | 109,200 | ||||
| Forest Oil Corp., 7.25%, 2019 |
1,985,000 | 1,588,000 | ||||
| Hilcorp Energy I LP, 7.75%, 2015 (n) |
200,000 | 153,000 | ||||
| Hilcorp Energy I LP, 9%, 2016 (n) |
1,095,000 | 870,525 | ||||
| Mariner Energy, Inc., 8%, 2017 |
1,310,000 | 871,150 | ||||
| Mcmoran Exploration Co., 11.875%, 2014 |
85,000 | 61,837 | ||||
| Newfield Exploration Co., 6.625%, 2014 |
650,000 | 578,500 | ||||
| Newfield Exploration Co., 6.625%, 2016 |
225,000 | 195,750 | ||||
| OPTI Canada, Inc., 8.25%, 2014 |
2,005,000 | 681,700 | ||||
| Petrohawk Energy Corp., 10.5%, 2014 (z) |
510,000 | 502,350 | ||||
| Plains Exploration & Production Co., 7%, 2017 |
1,520,000 | 1,295,800 | ||||
| Quicksilver Resources, Inc., 8.25%, 2015 |
190,000 | 154,850 | ||||
| Quicksilver Resources, Inc., 7.125%, 2016 |
1,745,000 | 1,151,700 | ||||
| Range Resource Corp., 7.5%, 2016 |
140,000 | 129,500 | ||||
| SandRidge Energy, Inc., 8%, 2018 (n) |
1,020,000 | 795,600 | ||||
| $ | 12,515,687 | |||||
| Energy - Integrated – 0.4% |
||||||
| ConocoPhillips, 6.5%, 2039 |
$ | 170,000 | $ | 164,768 | ||
| Hess Corp., 8.125%, 2019 |
100,000 | 101,927 | ||||
| Petrobras International Finance Co., 7.875%, 2019 |
1,161,000 | 1,163,903 | ||||
| Petroleum Co. of Trinidad & Tobago Ltd., 6%, 2022 (n) |
430,000 | 298,377 | ||||
| $ | 1,728,975 | |||||
| Entertainment – 0.3% |
||||||
| AMC Entertainment, Inc., 11%, 2016 |
$ | 1,200,000 | $ | 1,080,000 | ||
| Marquee Holdings, Inc., 9.505%, 2014 |
205,000 | 137,350 | ||||
| $ | 1,217,350 | |||||
| Financial Institutions – 0.5% |
||||||
| GMAC Commercial Mortgage Securities, Inc., 6.875%, 2011 (z) |
$ | 1,994,000 | $ | 1,298,090 | ||
| GMAC Commercial Mortgage Securities, Inc., 7%, 2012 (z) |
455,000 | 271,230 | ||||
| GMAC Commercial Mortgage Securities, Inc., 6.75%, 2014 (z) |
815,000 | 395,748 | ||||
| GMAC Commercial Mortgage Securities, Inc., 8%, 2031 (z) |
69,000 | 30,975 | ||||
| ILFC E-Capital Trust I, 5.9% to 2010, FRN to 2065 (n) |
2,500,000 | 305,420 | ||||
| $ | 2,301,463 | |||||
| Food & Beverages – 0.9% |
||||||
| ARAMARK Corp., 8.5%, 2015 |
$ | 449,000 | $ | 408,590 | ||
| B&G Foods, Inc., 8%, 2011 |
170,000 | 154,700 | ||||
| Dean Foods Co., 7%, 2016 |
1,700,000 | 1,615,000 | ||||
| Del Monte Corp., 6.75%, 2015 |
1,075,000 | 1,026,625 | ||||
| General Mills, Inc., 5.65%, 2012 |
156,000 | 162,909 | ||||
| Tyson Foods, Inc., 7.85%, 2016 |
912,000 | 734,345 | ||||
| $ | 4,102,169 | |||||
| Forest & Paper Products – 1.3% |
||||||
| Buckeye Technologies, Inc., 8.5%, 2013 |
$ | 425,000 | $ | 378,781 | ||
| Georgia-Pacific Corp., 7.125%, 2017 (n) |
2,085,000 | 1,912,988 | ||||
| Georgia-Pacific Corp., 8%, 2024 |
140,000 | 105,000 | ||||
| Graphic Packaging International Corp., 9.5%, 2013 |
1,310,000 | 975,950 | ||||
| International Paper Co., 7.4%, 2014 |
900,000 | 723,964 | ||||
| Jefferson Smurfit Corp., 8.25%, 2012 (d) |
1,425,000 | 114,000 | ||||
| NewPage Holding Corp., 10%, 2012 |
1,000,000 | 302,500 | ||||
| Smurfit-Stone Container Corp., 8%, 2017 (d) |
536,000 | 46,900 | ||||
4
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Forest & Paper Products – continued |
||||||
| Stora Enso Oyj, 6.404%, 2016 (z) |
$ | 1,560,000 | $ | 942,997 | ||
| $ | 5,503,080 | |||||
| Gaming & Lodging – 1.7% |
||||||
| Boyd Gaming Corp., 6.75%, 2014 |
$ | 1,255,000 | $ | 652,600 | ||
| Firekeepers Development Authority, 13.875%, 2015 (z) |
270,000 | 170,100 | ||||
| Fontainebleau Las Vegas Holdings LLC, 11%, 2015 (a)(n) |
460,000 | 29,900 | ||||
| Harrah’s Operating Co., Inc., 10.75%, 2016 |
3,163,000 | 442,820 | ||||
| Harrah’s Operating Co., Inc., 10%, 2018 (z) |
725,000 | 203,000 | ||||
| Host Hotels & Resorts, Inc., 7.125%, 2013 |
470,000 | 372,475 | ||||
| Host Hotels & Resorts, Inc., 6.75%, 2016 |
880,000 | 633,600 | ||||
| MGM Mirage, 8.5%, 2010 |
1,750,000 | 796,250 | ||||
| MGM Mirage, 8.375%, 2011 |
1,805,000 | 451,250 | ||||
| MGM Mirage, 6.75%, 2013 |
230,000 | 98,325 | ||||
| MGM Mirage, 5.875%, 2014 |
480,000 | 199,200 | ||||
| Pinnacle Entertainment, Inc., 8.75%, 2013 |
70,000 | 62,300 | ||||
| Pinnacle Entertainment, Inc., 7.5%, 2015 |
2,370,000 | 1,564,200 | ||||
| Scientific Games Corp., 6.25%, 2012 |
380,000 | 342,950 | ||||
| Starwood Hotels & Resorts Worldwide, Inc., 7.875%, 2012 |
325,000 | 281,125 | ||||
| Starwood Hotels & Resorts Worldwide, Inc., 6.75%, 2018 |
235,000 | 160,975 | ||||
| Station Casinos, Inc., 6%, 2012 (d) |
1,730,000 | 536,300 | ||||
| Station Casinos, Inc., 6.5%, 2014 (d) |
25,000 | 750 | ||||
| Station Casinos, Inc., 6.875%, 2016 (d) |
980,000 | 29,400 | ||||
| Trump Entertainment Resorts Holdings, Inc., 8.5%, 2015 (d) |
1,835,000 | 201,850 | ||||
| Wyndham Worldwide Corp., 6%, 2016 |
270,000 | 130,782 | ||||
| $ | 7,360,152 | |||||
| Industrial – 0.3% |
||||||
| Blount International, Inc., 8.875%, 2012 |
$ | 635,000 | $ | 638,175 | ||
| JohnsonDiversey, Inc., 9.625%, 2012 |
EUR | 125,000 | 131,529 | |||
| JohnsonDiversey, Inc., “B”, 9.625%, 2012 |
$ | 605,000 | 505,175 | |||
| $ | 1,274,879 | |||||
| Insurance - Property & Casualty – 0.9% |
||||||
| AXIS Capital Holdings Ltd., 5.75%, 2014 |
$ | 1,689,000 | $ | 1,304,244 | ||
| Fund American Cos., Inc., 5.875%, 2013 |
1,351,000 | 1,042,707 | ||||
| USI Holdings Corp., FRN, 5.112%, 2014 (n) |
1,005,000 | 477,375 | ||||
| ZFS Finance USA Trust V, 6.5% to 2017, FRN to 2037 (n) |
2,490,000 | 983,550 | ||||
| $ | 3,807,876 | |||||
| International Market Quasi-Sovereign – 0.1% |
||||||
| Canada Housing Trust, 4.6%, 2011 (n) |
CAD | 392,000 | $ | 329,552 | ||
| International Market Sovereign – 14.4% |
||||||
| Federal Republic of Germany, 5.25%, 2010 |
EUR | 3,901,000 | $ | 5,206,318 | ||
| Federal Republic of Germany, 3.75%, 2015 |
EUR | 5,779,000 | 7,825,764 | |||
| Federal Republic of Germany, 6.25%, 2030 |
EUR | 1,556,000 | 2,546,849 | |||
| Government of Australia, 6.25%, 2015 |
AUD | 1,021,000 | 731,616 | |||
| Government of Canada, 4.5%, 2015 |
CAD | 1,035,000 | 919,118 | |||
| Government of Canada, 5.75%, 2033 |
CAD | 238,000 | 244,692 | |||
| Government of Japan, 0.8%, 2010 |
JPY | 187,800,000 | 1,941,553 | |||
| Government of Japan, 1.5%, 2012 |
JPY | 552,000,000 | 5,836,008 | |||
| Government of Japan, 1.3%, 2014 |
JPY | 227,600,000 | 2,399,573 | |||
| Government of Japan, 1.7%, 2017 |
JPY | 125,600,000 | 1,358,669 | |||
| Government of Japan, 2.2%, 2027 |
JPY | 504,000,000 | 5,431,498 | |||
| Kingdom of Belgium, 5.5%, 2017 |
EUR | 1,254,000 | 1,760,101 | |||
| Kingdom of Denmark, 4%, 2015 |
DKK | 2,220,000 | 391,743 | |||
| Kingdom of Netherlands, 3.75%, 2014 |
EUR | 1,072,000 | 1,407,070 | |||
| Kingdom of Spain, 5.35%, 2011 |
EUR | 2,742,000 | 3,735,702 | |||
5
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| International Market Sovereign – continued |
||||||
| Kingdom of Sweden, 4.5%, 2015 |
SEK | $2,635,000 | $ | 329,418 | ||
| Republic of Austria, 4.65%, 2018 |
EUR | 737,000 | 974,181 | |||
| Republic of France, 4.75%, 2012 |
EUR | 769,000 | 1,056,080 | |||
| Republic of France, 5%, 2016 |
EUR | 1,290,000 | 1,823,975 | |||
| Republic of France, 6%, 2025 |
EUR | 524,000 | 802,516 | |||
| Republic of France, 4.75%, 2035 |
EUR | 2,110,000 | 2,898,605 | |||
| Republic of Ireland, 4.6%, 2016 |
EUR | 249,000 | 303,643 | |||
| Republic of Italy, 4.75%, 2013 |
EUR | 4,881,000 | 6,507,493 | |||
| Republic of Italy, 5.25%, 2017 |
EUR | 1,881,000 | 2,553,947 | |||
| United Kingdom Treasury, 8%, 2015 |
GBP | 875,000 | 1,621,706 | |||
| United Kingdom Treasury, 8%, 2021 |
GBP | 588,000 | 1,192,787 | |||
| United Kingdom Treasury, 4.25%, 2036 |
GBP | 808,000 | 1,130,429 | |||
| $ | 62,931,054 | |||||
| Machinery & Tools – 0.2% |
||||||
| Case New Holland, Inc., 7.125%, 2014 |
$ | 1,190,000 | $ | 815,150 | ||
| Major Banks – 0.8% |
||||||
| Bank of America Corp., 8% to 2018, FRN to 2059 |
$ | 600,000 | $ | 224,047 | ||
| BNP Paribas, 5.186% to 2015, FRN to 2049 (n) |
1,667,000 | 759,622 | ||||
| Morgan Stanley, 5.75%, 2016 |
662,000 | 580,126 | ||||
| Morgan Stanley, 6.625%, 2018 |
391,000 | 361,050 | ||||
| MUFG Capital Finance 1 Ltd., 6.346% to 2016, FRN to 2049 |
797,000 | 548,746 | ||||
| Natixis S.A., 10% to 2018, FRN to 2049 (n) |
2,510,000 | 498,863 | ||||
| Royal Bank of Scotland Group PLC, 6.99% to 2017, FRN to 2049 (n) |
170,000 | 44,200 | ||||
| UniCredito Luxembourg Finance S.A., 6%, 2017 (n) |
830,000 | 638,814 | ||||
| $ | 3,655,468 | |||||
| Medical & Health Technology & Services – 4.2% |
||||||
| Biomet, Inc., 10%, 2017 |
$ | 615,000 | $ | 615,000 | ||
| Biomet, Inc., 11.625%, 2017 |
2,260,000 | 2,090,500 | ||||
| Community Health Systems, Inc., 8.875%, 2015 |
2,095,000 | 1,982,394 | ||||
| Cooper Cos., Inc., 7.125%, 2015 |
570,000 | 509,437 | ||||
| DaVita, Inc., 6.625%, 2013 |
294,000 | 286,650 | ||||
| DaVita, Inc., 7.25%, 2015 |
1,750,000 | 1,697,500 | ||||
| Fresenius Medical Care AG & Co. KGaA, 9%, 2015 (z) |
665,000 | 691,600 | ||||
| HCA, Inc., 8.75%, 2010 |
480,000 | 477,600 | ||||
| HCA, Inc., 9.25%, 2016 |
4,475,000 | 4,094,625 | ||||
| Hospira, Inc., 6.05%, 2017 |
1,091,000 | 960,846 | ||||
| Mckesson Corp., 7.5%, 2019 |
110,000 | 114,846 | ||||
| Owens & Minor, Inc., 6.35%, 2016 |
970,000 | 825,129 | ||||
| Psychiatric Solutions, Inc., 7.75%, 2015 |
1,060,000 | 930,150 | ||||
| U.S. Oncology, Inc., 10.75%, 2014 |
1,700,000 | 1,568,250 | ||||
| Universal Hospital Services, Inc., 8.5%, 2015 (p) |
1,030,000 | 896,100 | ||||
| VWR Funding, Inc., 10.25%, 2015 (p) |
1,000,000 | 730,000 | ||||
| $ | 18,470,627 | |||||
| Metals & Mining – 2.8% |
||||||
| Arch Western Finance LLC, 6.75%, 2013 |
$ | 1,655,000 | $ | 1,547,425 | ||
| FMG Finance Ltd., 10.625%, 2016 (n) |
1,650,000 | 1,402,500 | ||||
| Freeport-McMoRan Copper & Gold, Inc., 8.375%, 2017 |
3,670,000 | 3,165,375 | ||||
| Freeport-McMoRan Copper & Gold, Inc., FRN, 7.083%, 2015 |
265,000 | 198,087 | ||||
| International Steel Group, Inc., 6.5%, 2014 |
1,300,000 | 1,120,323 | ||||
| Ispat Inland ULC, 9.75%, 2014 |
1,200,000 | 1,107,000 | ||||
| Peabody Energy Corp., 5.875%, 2016 |
675,000 | 604,125 | ||||
| Peabody Energy Corp., 7.375%, 2016 |
1,500,000 | 1,462,500 | ||||
| Rio Tinto Finance USA Ltd., 5.875%, 2013 |
95,000 | 86,354 | ||||
6
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Metals & Mining – continued |
||||||
| Steel Dynamics, Inc., 7.375%, 2012 |
$ | 1,620,000 | $ | 1,401,300 | ||
| $ | 12,094,989 | |||||
| Mortgage Backed – 10.3% |
||||||
| Fannie Mae, 3.81%, 2013 |
$ | 323,721 | $ | 322,250 | ||
| Fannie Mae, 4.1%, 2013 |
526,608 | 529,822 | ||||
| Fannie Mae, 4.19%, 2013 |
424,863 | 428,285 | ||||
| Fannie Mae, 4.845%, 2013 |
143,847 | 148,312 | ||||
| Fannie Mae, 4.589%, 2014 |
337,005 | 342,024 | ||||
| Fannie Mae, 4.6%, 2014 |
436,094 | 442,684 | ||||
| Fannie Mae, 4.609%, 2014 |
498,291 | 506,428 | ||||
| Fannie Mae, 4.77%, 2014 |
566,084 | 577,051 | ||||
| Fannie Mae, 4.56%, 2015 |
183,027 | 184,823 | ||||
| Fannie Mae, 4.665%, 2015 |
148,348 | 150,547 | ||||
| Fannie Mae, 4.7%, 2015 |
141,584 | 143,906 | ||||
| Fannie Mae, 4.74%, 2015 |
350,212 | 356,628 | ||||
| Fannie Mae, 4.78%, 2015 |
681,897 | 695,740 | ||||
| Fannie Mae, 4.815%, 2015 |
600,000 | 613,170 | ||||
| Fannie Mae, 4.87%, 2015 |
498,757 | 510,831 | ||||
| Fannie Mae, 4.89%, 2015 |
99,888 | 102,412 | ||||
| Fannie Mae, 4.921%, 2015 |
1,000,528 | 1,028,204 | ||||
| Fannie Mae, 6%, 2016-2037 |
7,125,301 | 7,387,809 | ||||
| Fannie Mae, 5.5%, 2019-2035 |
15,090,287 | 15,274,585 | ||||
| Fannie Mae, 4.88%, 2020 |
489,911 | 493,538 | ||||
| Fannie Mae, 6.5%, 2032-2033 |
1,226,936 | 1,293,157 | ||||
| Fannie Mae, 5%, 2034 |
4,099,199 | 4,186,216 | ||||
| Freddie Mac, 5%, 2024 |
96,619 | 97,993 | ||||
| Freddie Mac, 5.5%, 2034 |
3,361,002 | 3,455,680 | ||||
| Freddie Mac, 6%, 2034 |
878,445 | 914,387 | ||||
| Ginnie Mae, 5.5%, 2038 |
4,808,105 | 4,948,428 | ||||
| $ | 45,134,910 | |||||
| Natural Gas - Distribution – 0.5% |
||||||
| AmeriGas Partners LP, 7.25%, 2015 |
$ | 670,000 | $ | 626,450 | ||
| AmeriGas Partners LP, 7.125%, 2016 |
925,000 | 860,250 | ||||
| Inergy LP, 6.875%, 2014 |
585,000 | 538,200 | ||||
| $ | 2,024,900 | |||||
| Natural Gas - Pipeline – 1.8% |
||||||
| Atlas Pipeline Partners LP, 8.125%, 2015 |
$ | 1,500,000 | $ | 952,500 | ||
| Atlas Pipeline Partners LP, 8.75%, 2018 |
250,000 | 155,000 | ||||
| CenterPoint Energy, Inc., 7.875%, 2013 |
960,000 | 972,822 | ||||
| Deutsche Bank (El Paso Performance-Linked Trust, CLN), 7.75%, 2011 (n) |
1,890,000 | 1,783,714 | ||||
| El Paso Corp., 8.25%, 2016 |
675,000 | 627,750 | ||||
| El Paso Corp., 7.25%, 2018 |
595,000 | 525,087 | ||||
| El Paso Corp., 7.75%, 2032 |
201,000 | 154,296 | ||||
| Spectra Energy Capital LLC, 8%, 2019 |
1,350,000 | 1,328,137 | ||||
| TransCapitalInvest Ltd., 5.67%, 2014 |
229,000 | 168,315 | ||||
| Williams Partners LP, 7.25%, 2017 |
1,355,000 | 1,178,850 | ||||
| $ | 7,846,471 | |||||
| Network & Telecom – 2.6% |
||||||
| AT&T, Inc., 6.55%, 2039 |
$ | 170,000 | $ | 157,760 | ||
| Cincinnati Bell, Inc., 8.375%, 2014 |
1,000,000 | 915,000 | ||||
| Citizens Communications Co., 9.25%, 2011 |
815,000 | 831,300 | ||||
| Citizens Communications Co., 9%, 2031 |
405,000 | 295,650 | ||||
| Nordic Telephone Co. Holdings, 8.875%, 2016 (n) |
1,177,000 | 1,071,070 | ||||
| Qwest Communications International, Inc., 7.25%, 2011 |
2,500,000 | 2,381,250 | ||||
7
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Network & Telecom – continued |
||||||
| Qwest Corp., 7.875%, 2011 |
$ | 1,020,000 | $ | 1,004,700 | ||
| Qwest Corp., 8.875%, 2012 |
980,000 | 965,300 | ||||
| Telefonica Europe B.V., 7.75%, 2010 |
600,000 | 630,443 | ||||
| TELUS Corp., 8%, 2011 |
779,000 | 806,857 | ||||
| Verizon New York, Inc., 6.875%, 2012 |
1,525,000 | 1,558,184 | ||||
| Windstream Corp., 8.625%, 2016 |
980,000 | 940,800 | ||||
| $ | 11,558,314 | |||||
| Oil Services – 0.1% |
||||||
| KazMunaiGaz Finance B.V., 8.375%, 2013 (n) |
$ | 251,000 | $ | 175,700 | ||
| KazMunaiGaz Finance B.V., 9.125%, 2018 (n) |
733,000 | 447,130 | ||||
| $ | 622,830 | |||||
| Oils – 0.4% |
||||||
| Premcor Refining Group, Inc., 7.5%, 2015 |
$ | 1,600,000 | $ | 1,543,680 | ||
| Other Banks & Diversified Financials – 0.7% |
||||||
| Bosphorus Financial Services Ltd., FRN, 3.034%, 2012 (z) |
$ | 1,125,000 | $ | 964,243 | ||
| Export-Import Bank of Korea, 8.125%, 2014 |
888,000 | 908,912 | ||||
| Resona Bank Ltd., 5.85% to 2016, FRN to 2049 (n) |
655,000 | 298,025 | ||||
| Woori Bank, 6.125% to 2011, FRN to 2016 (n) |
1,490,000 | 1,006,055 | ||||
| $ | 3,177,235 | |||||
| Pharmaceuticals – 0.0% |
||||||
| Roche Holdings, Inc., 7%, 2039 (z) |
$ | 170,000 | $ | 178,138 | ||
| Pollution Control – 0.0% |
||||||
| Allied Waste North America, Inc., 7.125%, 2016 |
$ | 75,000 | $ | 72,375 | ||
| Precious Metals & Minerals – 0.3% |
||||||
| Alrosa Finance S.A., 8.875%, 2014 |
$ | 2,016,000 | $ | 1,379,077 | ||
| Printing & Publishing – 0.4% |
||||||
| American Media Operations, Inc., 9%, 2013 (p)(z) |
$ | 10,168 | $ | 6,101 | ||
| American Media Operations, Inc., 14%, 2013 (p)(z) |
104,870 | 52,435 | ||||
| Dex Media West LLC, 9.875%, 2013 |
1,855,000 | 282,888 | ||||
| Idearc, Inc., 8%, 2016 (a) |
568,000 | 8,520 | ||||
| Nielsen Finance LLC, 10%, 2014 |
1,605,000 | 1,324,125 | ||||
| $ | 1,674,069 | |||||
| Real Estate – 0.4% |
||||||
| HRPT Properties Trust, REIT, 6.25%, 2016 |
$ | 1,422,000 | $ | 915,720 | ||
| Simon Property Group, Inc., REIT, 5.875%, 2017 |
1,260,000 | 1,014,257 | ||||
| $ | 1,929,977 | |||||
| Retailers – 0.5% |
||||||
| Couche-Tard, Inc., 7.5%, 2013 |
$ | 350,000 | $ | 330,750 | ||
| General Nutrition Centers, Inc., 7.584%, 2014 (p) |
740,000 | 436,600 | ||||
| Home Depot, Inc., 5.875%, 2036 |
509,000 | 370,212 | ||||
| Rite Aid Corp., 9.5%, 2017 |
260,000 | 63,700 | ||||
| Sally Beauty Holdings, Inc., 10.5%, 2016 |
985,000 | 854,487 | ||||
| $ | 2,055,749 | |||||
| Specialty Stores – 0.1% |
||||||
| GSC Holdings Corp., 8%, 2012 |
$ | 220,000 | $ | 220,000 | ||
| Payless ShoeSource, Inc., 8.25%, 2013 |
170,000 | 143,650 | ||||
| $ | 363,650 | |||||
| Supermarkets – 0.3% |
||||||
| Delhaize America, Inc., 9%, 2031 |
$ | 980,000 | $ | 1,093,924 | ||
| Supranational – 1.0% |
||||||
| Central American Bank, 4.875%, 2012 (n) |
$ | 1,426,000 | $ | 1,352,484 | ||
8
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Supranational – continued |
||||||
| European Investment Bank, 5.125%, 2017 |
$ | 2,593,000 | $ | 2,806,663 | ||
| $ | 4,159,147 | |||||
| Telecommunications - Wireless – 1.7% |
||||||
| Alltel Corp., 7%, 2012 |
$ | 361,000 | $ | 370,927 | ||
| AT&T Wireless Services, Inc., 8.75%, 2031 |
900,000 | 985,702 | ||||
| Cingular Wireless LLC, 6.5%, 2011 |
1,020,000 | 1,071,637 | ||||
| Crown Castle International Corp., 9%, 2015 |
345,000 | 336,375 | ||||
| MetroPCS Wireless, Inc., 9.25%, 2014 |
1,155,000 | 1,091,475 | ||||
| Rogers Cable, Inc., 5.5%, 2014 |
1,025,000 | 1,012,339 | ||||
| Rogers Wireless, Inc., 7.5%, 2015 |
270,000 | 280,658 | ||||
| Sprint Nextel Corp., 8.375%, 2012 |
1,290,000 | 1,044,900 | ||||
| Sprint Nextel Corp., 8.75%, 2032 |
315,000 | 189,787 | ||||
| Sprint Nextel Corp., FRN, 1.866%, 2010 |
630,000 | 546,959 | ||||
| Vodafone Group PLC, 5.625%, 2017 |
167,000 | 162,115 | ||||
| Wind Acquisition Finance S.A., 10.75%, 2015 (z) |
408,000 | 409,020 | ||||
| $ | 7,501,894 | |||||
| Telephone Services – 0.2% |
||||||
| Embarq Corp., 7.082%, 2016 |
$ | 1,044,000 | $ | 939,600 | ||
| Tobacco – 0.6% |
||||||
| Altria Group, Inc., 9.7%, 2018 |
$ | 300,000 | $ | 314,099 | ||
| Reynolds American, Inc., 6.75%, 2017 |
2,984,000 | 2,520,164 | ||||
| $ | 2,834,263 | |||||
| Transportation – 0.0% |
||||||
| Peru Enhanced Pass-Through Trust, 0%, 2018 (n) |
$ | 242,200 | $ | 133,210 | ||
| Transportation - Services – 0.2% |
||||||
| Hertz Corp., 8.875%, 2014 |
$ | 1,270,000 | $ | 622,300 | ||
| Westinghouse Air Brake Technologies Corp., 6.875%, 2013 |
370,000 | 345,025 | ||||
| $ | 967,325 | |||||
| U.S. Government Agencies and Equivalents – 0.8% |
||||||
| Freddie Mac, 5.5%, 2017 |
$ | 3,060,000 | $ | 3,468,308 | ||
| U.S. Treasury Obligations – 11.1% |
||||||
| U.S. Treasury Bonds, 10.625%, 2015 |
$ | 2,010,000 | $ | 2,952,501 | ||
| U.S. Treasury Bonds, 7.5%, 2016 |
3,450,000 | 4,453,194 | ||||
| U.S. Treasury Bonds, 4.75%, 2017 |
7,000,000 | 7,936,250 | ||||
| U.S. Treasury Bonds, 6.25%, 2023 (f) |
4,800,000 | 6,012,749 | ||||
| U.S. Treasury Bonds, 5.375%, 2031 |
477,000 | 571,878 | ||||
| U.S. Treasury Bonds, 4.5%, 2036 |
158,000 | 174,985 | ||||
| U.S. Treasury Bonds, 4.75%, 2037 |
2,986,200 | 3,454,194 | ||||
| U.S. Treasury Notes, 4.75%, 2011 |
4,700,000 | 5,056,537 | ||||
| U.S. Treasury Notes, 4.25%, 2015 |
10,800,000 | 11,949,185 | ||||
| U.S. Treasury Notes, 9.875%, 2015 |
3,015,000 | 4,306,976 | ||||
| U.S. Treasury Notes, 6.375%, 2027 |
1,410,000 | 1,845,999 | ||||
| $ | 48,714,448 | |||||
| Utilities - Electric Power – 4.8% |
||||||
| AES Corp., 8%, 2017 |
$ | 700,000 | $ | 595,000 | ||
| Allegheny Energy Supply Co. LLC, 8.25%, 2012 (n) |
370,000 | 375,550 | ||||
| Bruce Mansfield Unit, 6.85%, 2034 |
1,560,000 | 1,193,650 | ||||
| CenterPoint Energy, Inc., 6.5%, 2018 |
400,000 | 328,820 | ||||
| Dynegy Holdings, Inc., 7.5%, 2015 |
825,000 | 511,500 | ||||
| Dynegy Holdings, Inc., 7.75%, 2019 |
315,000 | 190,575 | ||||
| Edison Mission Energy, 7%, 2017 |
1,215,000 | 1,026,675 | ||||
| EDP Finance B.V., 6%, 2018 (n) |
798,000 | 741,048 | ||||
| Enersis S.A., 7.375%, 2014 |
509,000 | 527,561 | ||||
9
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Utilities - Electric Power – continued |
||||||
| Exelon Generation Co. LLC, 6.95%, 2011 |
$ | 1,492,000 | $ | 1,514,065 | ||
| FirstEnergy Corp., 6.45%, 2011 |
1,019,000 | 1,017,930 | ||||
| HQI Transelec Chile S.A., 7.875%, 2011 |
1,500,000 | 1,498,278 | ||||
| ISA Capital do Brasil S.A., 7.875%, 2012 (n) |
149,000 | 141,550 | ||||
| Mirant Americas Generation LLC, 8.3%, 2011 |
100,000 | 96,500 | ||||
| Mirant North America LLC, 7.375%, 2013 |
2,425,000 | 2,218,875 | ||||
| NiSource Finance Corp., 7.875%, 2010 |
687,000 | 672,830 | ||||
| NorthWestern Corp., 5.875%, 2014 |
1,435,000 | 1,417,183 | ||||
| NRG Energy, Inc., 7.375%, 2016 |
1,465,000 | 1,351,463 | ||||
| Reliant Energy, Inc., 7.875%, 2017 |
971,000 | 706,402 | ||||
| System Energy Resources, Inc., 5.129%, 2014 (z) |
1,495,872 | 1,369,531 | ||||
| Taqa Abu Dhabi National Energy Co., 6.6%, 2013 (n) |
1,256,000 | 1,217,028 | ||||
| Texas Competitive Electric Holdings, LLC, 10.25%, 2015 |
4,115,000 | 2,078,075 | ||||
| $ | 20,790,089 | |||||
| Total Bonds |
$ | 401,944,648 | ||||
| Floating Rate Loans – 1.7% (g)(r) |
||||||
| Aerospace – 0.1% |
||||||
| Hawker Beechcraft Acquisition Co. LLC, Letter of Credit, 3.45%, 2014 |
$ | 51,209 | $ | 23,527 | ||
| Hawker Beechcraft Acquisition Co. LLC, Term Loan, 2.8%, 2014 |
1,001,186 | 459,989 | ||||
| $ | 483,516 | |||||
| Automotive – 0.3% |
||||||
| Accuride Corp., Term Loan B, 8%, 2012 |
$ | 90,346 | $ | 60,171 | ||
| Allison Transmission, Inc., Term Loan B, 3.2%, 2014 |
247,963 | 164,276 | ||||
| Federal-Mogul Corp., Term Loan B, 2.35%, 2015 |
331,914 | 156,000 | ||||
| Ford Motor Co., Term Loan B, 5%, 2013 |
551,022 | 176,097 | ||||
| General Motors, Term Loan B, 4.14%, 2013 |
1,220,849 | 437,325 | ||||
| Goodyear Tire & Rubber Co., Second Lien Term Loan, 2.23%, 2014 |
480,501 | 334,119 | ||||
| $ | 1,327,988 | |||||
| Broadcasting – 0.0% |
||||||
| Gray Television, Inc., Term Loan, 2014 (o) |
$ | 90,561 | $ | 45,462 | ||
| Building – 0.0% |
||||||
| Building Materials Holding Corp., Term Loan, 3.87%, 2014 |
$ | 104,520 | $ | 71,248 | ||
| Business Services – 0.1% |
||||||
| First Data Corp., Term Loan B-1, 3.22%, 2014 |
$ | 422,709 | $ | 277,455 | ||
| Cable TV – 0.3% |
||||||
| Charter Communications Operating LLC, Term Loan, 3.21%, 2014 (o) |
$ | 924,607 | $ | 733,907 | ||
| CSC Holdings, Inc., Incremental Term Loan, 2.2%, 2013 |
331,011 | 300,392 | ||||
| $ | 1,034,299 | |||||
| Consumer Goods & Services – 0.0% |
||||||
| KAR Holdings, Inc., Term Loan B, 3.25%, 2013 |
$ | 133,994 | $ | 90,148 | ||
| Electronics – 0.0% |
||||||
| Freescale Semiconductor, Inc., Term Loan B, 3.93%, 2013 |
$ | 286,529 | $ | 123,821 | ||
| Forest & Paper Products – 0.0% |
||||||
| Abitibi-Consolidated, Inc., Term Loan, 11.5%, 2009 |
$ | 119,955 | $ | 87,327 | ||
| Industrial – 0.0% |
||||||
| Oshkosh Truck Corp., Term Loan B, 2013 (o) |
$ | 131,315 | $ | 91,920 | ||
| Medical & Health Technology & Services – 0.2% |
||||||
| Community Health Systems, Inc., Term Loan, 2.72%, 2014 |
$ | 27,495 | $ | 23,280 | ||
| Community Health Systems, Inc., Term Loan B, 3.43%, 2014 |
537,608 | 455,195 | ||||
| HCA, Inc., Term Loan B, 3.7%, 2013 |
436,076 | 367,576 | ||||
| $ | 846,051 | |||||
10
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Floating Rate Loans (g)(r) – continued |
||||||
| Printing & Publishing – 0.2% |
||||||
| Nielsen Finance LLC, Term Loan B, 2.44%, 2013 |
$ | 767,169 | $ | 601,908 | ||
| Specialty Chemicals – 0.1% |
||||||
| Lyondell Basell, Term Loan B-2, 2014 (o) |
$ | 280,401 | $ | 51,874 | ||
| Lyondell Chemical Co., Term Loan B-2, 6%, 2014 |
924,086 | 192,903 | ||||
| $ | 244,777 | |||||
| Specialty Stores – 0.0% |
||||||
| Michaels Stores, Inc., Term Loan B, 2.76%, 2013 |
$ | 63,033 | $ | 35,246 | ||
| Transportation - Services – 0.0% |
||||||
| Hertz Corp., Synthetic Letter of Credit, 2012 (o) |
$ | 7,594 | $ | 4,993 | ||
| Hertz Corp., Term Loan, 2012 (o) |
41,681 | 27,405 | ||||
| $ | 32,398 | |||||
| Utilities - Electric Power – 0.4% |
||||||
| Calpine Corp., DIP Term Loan, 4.33%, 2014 |
$ | 858,060 | $ | 622,400 | ||
| NRG Energy, Inc., Letter of Credit, 2.95%, 2013 |
221,930 | 203,787 | ||||
| NRG Energy, Inc., Term Loan, 2.67%, 2013 |
451,123 | 414,244 | ||||
| Texas Competitive Electric Holdings Co. LLC, Term Loan B-3, 3.95%, 2014 |
1,002,644 | 625,399 | ||||
| $ | 1,865,830 | |||||
| Total Floating Rate Loans |
$ | 7,259,394 | ||||
| Common Stocks – 0.0% |
||||||
| Printing & Publishing – 0.0% |
||||||
| American Media, Inc. |
1,991 | $ | 4,261 | |||
| Golden Books Family Entertainment, Inc. (a) |
3,683 | 0 | ||||
| Total Common Stocks |
$ | 4,261 | ||||
| Preferred Stocks – 0.0% |
||||||
| Automotive – 0.0% |
||||||
| Preferred Blocker, Inc., 7% (z) |
425 | $ | 72,569 | |||
| Money Market Funds (v) – 4.9% |
||||||
| MFS Institutional Money Market Portfolio, 0.44%, at Net Asset Value |
21,629,525 | $ | 21,629,525 | |||
| Total Investments |
$ | 430,910,397 | ||||
| Other Assets, Less Liabilities – 1.5% |
6,640,929 | |||||
| Net Assets – 100.0% |
$ | 437,551,326 | ||||
| (a) | Non-income producing security. |
| (d) | Non-income producing security - in default. |
| (f) | All or a portion of the security has been segregated as collateral for open futures contracts. |
| (g) | The rate shown represents a weighted average coupon rate on settled positions at period end, unless otherwise indicated. |
| (i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. |
| (n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $35,662,790, representing 8.2% of net assets. |
| (o) | All or a portion of this position has not settled. Upon settlement date, interest rates for unsettled amounts will be determined. The rate shown represents the weighted average coupon rate for settled amounts. |
| (p) | Payment-in-kind security. |
| (r) | Remaining maturities of floating rate loans may be less than stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. These loans may be subject to restrictions on resale. Floating rate loans generally have rates of interest which are determined periodically by reference to a base lending rate plus a premium. |
| (v) | Underlying fund that is available only to investment companies managed by MFS. The rate quoted is the annualized seven-day yield of the fund at period end. |
11
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/09 - continued
| (z) | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities: |
| Restricted Securities |
Acquisition Date | Cost | Current Market Value |
||||||
| American Media Operations, Inc., 9%, 2013 |
1/29/09 | $ | 6,150 | $ | 6,101 | ||||
| American Media Operations, Inc., 14%, 2013 |
1/29/09 | 52,832 | 52,435 | ||||||
| Bayview Financial Revolving Mortgage Loan Trust, FRN, 1.296%, 2040 |
1/27/06 | 1,160,000 | 510,400 | ||||||
| Bosphorus Financial Services Ltd., FRN, 3.034%, 2012 |
3/08/05 | 1,125,000 | 964,243 | ||||||
| CSC Holdings, Inc., 8.5%, 2014 |
1/08/09 | 240,548 | 259,200 | ||||||
| Corporación Nacional del Cobre de Chile, 7.5%, 2019 |
1/20/09 | 248,519 | 266,606 | ||||||
| DLJ Commercial Mortgage Corp., 6.04%, 2031 |
7/23/04 | 1,969,453 | 1,717,865 | ||||||
| Firekeepers Development Authority, 13.875%, 2015 |
4/22/08 | 262,767 | 170,100 | ||||||
| Forest Oil Corp., 8.5%, 2014 |
2/11/09 | 114,211 | 109,200 | ||||||
| Fresenius Medical Care AG & Co. KGaA, 9%, 2015 |
1/15/09 - 2/03/09 | 661,340 | 691,600 | ||||||
| GMAC Commercial Mortgage Securities, Inc., 6.875%, 2011 |
12/26/08 - 1/08/09 | 1,648,769 | 1,298,090 | ||||||
| GMAC Commercial Mortgage Securities, Inc., 7%, 2012 |
1/23/09 | 323,933 | 271,230 | ||||||
| GMAC Commercial Mortgage Securities, Inc., 6.75%, 2014 |
2/09/09 | 535,276 | 395,748 | ||||||
| GMAC Commercial Mortgage Securities, Inc., 8%, 2031 |
12/26/08 | 41,044 | 30,975 | ||||||
| Harrah’s Operating Co., Inc., 10%, 2018 |
1/30/08 - 10/03/08 | 696,696 | 203,000 | ||||||
| Intelsat Jackson Holdings Ltd., 9.5%, 2016 |
2/27/09 | 633,137 | 633,625 | ||||||
| Local TV Finance LLC, 9.25%, 2015 |
11/09/07 - 9/08/08 | 769,198 | 91,125 | ||||||
| Nationslink Funding Corp., 5%, 2031 |
3/07/08 | 695,007 | 703,763 | ||||||
| PNC Mortgage Acceptance Corp., FRN, 7.1%, 2032 |
3/25/08 | 2,510,000 | 2,165,858 | ||||||
| Petrohawk Energy Corp., 10.5%, 2014 |
1/22/09 - 2/10/09 | 480,183 | 502,350 | ||||||
| Preferred Blocker, Inc., 7% (Preferred Stock) |
12/26/08 | 327,250 | 72,569 | ||||||
| Republic of Indonesia, 10.375%, 2014 |
2/26/09 | 250,627 | 251,668 | ||||||
| Republic of Indonesia, 11.625%, 2019 |
2/26/09 | 1,690,670 | 1,689,633 | ||||||
| Roche Holdings, Inc., 7%, 2039 |
2/18/09 | 167,170 | 178,138 | ||||||
| Spirit Master Funding LLC, 5.05%, 2023 |
7/15/05 | 1,666,503 | 1,333,906 | ||||||
| Stora Enso Oyj, 6.404%, 2016 |
4/10/06 | 1,558,551 | 942,997 | ||||||
| System Energy Resources, Inc., 5.129%, 2014 |
4/16/04 | 1,495,872 | 1,369,531 | ||||||
| Wind Acquisition Finance S.A., 10.75%, 2015 |
3/19/08 | 409,020 | 409,020 | ||||||
| Total Restricted Securities |
$ | 17,290,976 | |||||||
| % of Net Assets |
4.0 | % | |||||||
The following abbreviations are used in this report and are defined:
| CDO | Collateralized Debt Obligation | |
| CLN | Credit-Linked Note | |
| DIP | Debtor-in-Possession | |
| FRN | Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end. | |
| REIT | Real Estate Investment Trust |
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below:
| AUD | Australian Dollar | |
| CAD | Canadian Dollar | |
| DKK | Danish Krone | |
| EUR | Euro | |
| GBP | British Pound | |
| JPY | Japanese Yen | |
| SEK | Swedish Krona |
See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.
12
MFS Charter Income Trust
Supplemental Information (Unaudited) 2/28/09
(1) Fair Value Disclosure
The fund adopted FASB Statement No. 157, Fair Value Measurements (the “Statement”). This Statement provides a single definition of fair value, a hierarchy for measuring fair value and expanded disclosures about fair value measurements.
Various inputs are used in determining the value of the fund’s assets or liabilities carried at market value. These inputs are categorized into three broad levels. Level 1 includes quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments not reflected in total investments, such as futures, forwards, swap contracts, and written options. The following is a summary of the levels used as of February 28, 2009 in valuing the fund’s assets or liabilities carried at market value:
| Level 1 | Level 2 | Level 3 | Total | |||||||||
| Investments in Securities |
$ | 21,702,094 | $ | 409,204,042 | $ | 4,261 | $ | 430,910,397 | ||||
| Other Financial Instruments |
$ | 9,923 | $ | 2,000,789 | $ | — | $ | 2,010,712 | ||||
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value. The table presents the activity of Level 3 securities held at the beginning and the end of the period.
| Investments in Securities |
Other Financial Instruments | |||||
| Balance as of 11/30/08 |
$ | — | $ | — | ||
| Accrued discounts/premiums |
— | — | ||||
| Realized gain (loss) |
— | — | ||||
| Change in unrealized appreciation |
— | — | ||||
| Net purchases (sales) |
4,261 | — | ||||
| Transfers in and/or out of Level 3 |
— | — | ||||
| Balance as of 2/28/09 |
$ | 4,261 | $ | — | ||
(2) Portfolio Securities
The cost and unrealized appreciation and depreciation in the value of the investments owned by the fund, as computed on a federal income tax basis, are as follows:
| Aggregate Cost |
$ | 504,431,634 | ||
| Gross unrealized appreciation |
$ | 6,477,586 | ||
| Gross unrealized depreciation |
(79,998,823 | ) | ||
| Net unrealized appreciation (depreciation) |
$ | (73,521,237 | ) | |
The aggregate cost above includes prior fiscal year end tax adjustments.
13
MFS Charter Income Trust
Supplemental Information (Unaudited) 2/28/09 - continued
(3) Derivative Contracts at 2/28/09
Forward Foreign Currency Exchange Contracts at 2/28/09
| Type |
Currency | Contracts to Deliver/Receive |
Settlement Date Range |
In Exchange For | Contracts at Value |
Net Unrealized Appreciation (Depreciation) |
||||||||||
| Appreciation |
||||||||||||||||
| SELL |
AUD | 1,082,577 | 3/06/09 | $ | 737,509 | $ | 692,103 | $ | 45,406 | |||||||
| SELL |
CAD | 1,809,831 | 5/19/09 | 1,434,570 | 1,423,069 | 11,501 | ||||||||||
| SELL |
DKK | 2,379,462 | 3/06/09 | 441,156 | 404,845 | 36,311 | ||||||||||
| BUY |
EUR | 288,406 | 5/20/09 | 363,271 | 365,534 | 2,263 | ||||||||||
| SELL |
EUR | 34,285,456 | 5/20/09 | 44,170,172 | 43,454,304 | 715,868 | ||||||||||
| SELL |
JPY | 2,040,989,486 | 5/18/09 | 22,453,130 | 20,946,076 | 1,507,054 | ||||||||||
| SELL |
SEK | 2,672,140 | 4/30/09 | 299,890 | 296,669 | 3,221 | ||||||||||
| $ | 2,321,624 | |||||||||||||||
| Depreciation |
||||||||||||||||
| BUY |
EUR | 390,626 | 5/20/09 | $ | 501,788 | $ | 495,090 | $ | (6,698 | ) | ||||||
| SELL |
GBP | 2,850,661 | 5/18/09 | 4,063,497 | 4,080,519 | (17,022 | ) | |||||||||
| BUY |
JPY | 365,386,587 | 5/19/09 | 3,983,696 | 3,749,954 | (233,742 | ) | |||||||||
| $ | (257,462 | ) | ||||||||||||||
Futures contracts outstanding at 2/28/09
| Description |
Contracts | Value | Expiration Date |
Unrealized Appreciation (Depreciation) |
|||||||
| U.S. Treasury Note 10 yr (Short) |
156 | $ | 18,724,875 | Jun-09 | $ | 205,423 | |||||
| U.S. Treasury Bond 30 yr (Long) |
58 | 7,153,938 | Jun-09 | (195,500 | ) | ||||||
| $ | 9,923 | ||||||||||
Swap Agreements at 2/28/09
| Expiration |
Notional Amount |
Counterparty |
Cash Flows |
Cash Flows |
Value | |||||||
| Credit Default Swaps |
||||||||||||
| 6/20/09 |
USD 200,000 | JPMorgan Chase Bank | 4.10% (fixed rate) | (1) | $ | (101,174 | ) | |||||
| 6/20/13 |
USD 1,120,000 | Morgan Stanley Capital Services, Inc. | (2) | 1.48% (fixed rate) | 37,801 | |||||||
| $ | (63,373 | ) | ||||||||||
| (1) | Fund, as protection seller, to pay notional amount upon a defined credit event by Abitibi – Consolidated, Inc., 8.375%, 4/01/15, a Ca rated bond. The fund entered into the contract to gain issuer exposure. |
| (2) | Fund, as protection buyer, to receive notional amount upon a defined credit event by Weyerhaeuser Co., 7.125%, 7/15/23. |
The credit ratings presented here are an indicator of the current payment/performance risk of the related swap, the reference obligation for which may be either a single security or, in case of a credit default index, a basket of securities issued by corporate or sovereign issuers. Each reference security, including each individual security within a reference basket of securities, is assigned a rating from Moody’s Investor Service. If not rated by Moody’s, the rating will be that assigned by Standard & Poor’s. Likewise, if not assigned by Standard & Poor’s, it will be based on the rating assigned by Fitch, Inc. The ratings for a credit default index are calculated by MFS as a weighted average of the external credit ratings of the individual securities that compose the index’s reference basket of securities.
14
MFS Charter Income Trust
Supplemental Information (Unaudited) 2/28/09 - continued
In a credit default swap, credit events, although contract specific, generally consist of a combination of the following: bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default, or repudiation/moratorium, each as defined in the 2003 ISDA Credit Derivatives Definitions as amended by the relevant contract. Obligation acceleration, obligation default, or repudiation/moratorium are generally applicable when the reference obligation is issued by a sovereign entity or an entity in an emerging country. In the event that a defined credit event occurs, the protection buyer, under the terms of the swap contract, designates which security will be delivered to satisfy the reference obligation. Upon designation of the reference security (or upon delivery of the reference security in the case of physical settlement), the difference between the value of the reference obligation and the swap’s notional amount is recorded as realized gain or loss on swap transactions in the Statement of Operations. Absent any recoveries under recourse or collateral provisions, the maximum amount of future, undiscounted payments that the fund, as protection seller, could be required to make is equal to the swap’s notional amount. The protection seller’s payment obligation would be offset to the extent of the value of the contract’s reference obligation.
At February 28, 2009, the fund had sufficient cash and/or other liquid securities to cover any commitments under these derivative contracts.
(4) Transactions in Underlying Funds-Affiliated Issuers
An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the fund assumes the following to be affiliated issuers:
| Underlying Funds |
Beginning Shares/Par Amount |
Acquisitions Shares/Par Amount |
Dispositions Shares/Par Amount |
Ending Shares/Par Amount | |||||||||
| MFS Institutional Money Market Portfolio |
— | 34,017,985 | (12,388,460 | ) | 21,629,525 | ||||||||
| Underlying Funds |
Realized Gain (Loss) |
Capital Gain Distributions |
Dividend Income |
Ending Value | |||||||||
| MFS Institutional Money Market Portfolio |
$ | — | $ | — | $ | 6,188 | $ | 21,629,525 | |||||
(5) Country Weightings
Country weighting percentages of portfolio holdings based on total net assets as of February 28, 2009, are as follows:
| United States |
72.1 | % | |
| Japan |
4.1 | % | |
| Germany |
3.6 | % | |
| Italy |
2.2 | % | |
| United Kingdom |
2.2 | % | |
| France |
1.9 | % | |
| Brazil |
1.5 | % | |
| Canada |
1.4 | % | |
| Chile |
1.1 | % | |
| Other Countries |
9.9 | % |
The country weighting percentages include both accrued interest amounts and the equivalent exposure from any derivative holdings, if applicable.
15
| ITEM 2. | CONTROLS AND PROCEDURES. |
| (a) | Based upon their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this Form N-Q, the registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. |
| (b) | There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
| ITEM 3. | EXHIBITS. |
File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto.
Notice
A copy of the Amended and Restated Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: MFS CHARTER INCOME TRUST
| By (Signature and Title)* | MARIA F. DWYER | |
| Maria F. Dwyer, President |
Date: April 20, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title)* | MARIA F. DWYER | |
| Maria F. Dwyer, President (Principal Executive Officer) |
Date: April 20, 2009
| By (Signature and Title)* | JOHN M. CORCORAN | |
| John M. Corcoran, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: April 20, 2009
| * | Print name and title of each signing officer under his or her signature. |